9 August 2001
The President and leadership of SACTWU
The secretary general of Cosatu
Comrades and friends,
It is indeed an honour for me to once again attend the congress of the Southern African Clothing and Textile Workers Union.
You have also chosen a historic and important day to begin your congress, National Women's Day, during which we honour the women of our land for their sterling contribution to our liberation and improving the quality of our lives. I hereby wish to salute the women members of SACTWU, and all women throughout the country.
Comrades, the clothing and textile industry is regarded by government as a strategic industrial sector, as stated by the President in his State of the Nation Address. This follows the Sectoral Job summit last August where all the social partners reached agreement on a growth strategy.
Comrades, as we meet today, seven years after our freedom, we have a lot to be proud of, but there are still a lot of challenges facing us as workers and as a nation.
Despite the fact that we took over an almost bankrupt country, we have managed to turn the situation around, in an era of globalisation, which has forced us to have to compete on equal terms with the rest of the world, despite the inequalities that exist in the world economic order. That is the background we need to have as we tackle our economic difficulties.
This turning around of our country has not come without cost. Globalisation has brought inevitable pain to working people as evidenced in particular by workers in the clothing and textile sector.
There is no doubt that globalisation is one of the greatest challenges that we have to confront. Globalisation should also be seen against the background of the major advances that have occurred in technology, such as information and communication industries. The net result of these changes in the world economic system is that everything moves faster.
Globalisation has also been about the shaping of the world economic system to the advantage of the developed world, often at the expense of developing countries. One of the key objectives of the developed countries is to remove all remaining barriers to the free movement of capital and the setting up of productive forces anywhere in the world. Economic boundaries are beginning to disappear.
The Marakesh Agreement coming out of the Uruguay Round of GATT introduced tariff reductions and other aspects of the agreement.
This affects the textile, leather and footwear industry in which SACTWU organizes. The pain has been most acutely felt in these sectors, through job losses, cheap imports and the general bending of rules and regulations at the expense of workers.
The key strategic question then becomes how to respond to the challenges of globalisation, which represents both opportunities and threats.
While the threats are the most problematic for developing countries, it is clear that no country can remain aloof from the international world trade system or continue to maintain barriers at previous levels.
At the same time, we should cushion ourselves against the adverse effects of globalisation. Our belief is that globalisation should not lead to more poverty for the developing nations, instead of increasing wealth all round.
That is why we should strengthen our co-operation and work together to deal with the problem. It is good to note that both unions and government are already doing something about the problem. This is important because it should be all of us who decide the destiny of our society and not individuals.
Given the challenges that exist in the clothing and textile sector, government has recognized that the long-term survival of the sector depends on its being competitive in both domestic and export markets.
Due to lower entry barriers, the clothing industry is highly competitive and constantly under threat from low cost producers. The biggest problem relates to illegal imports and a shift to the informal sector.
In this regard, it is our view that improved customs control, as evidenced by your working together with the South African Revenue Service, has been the correct course of action. This needs to be strengthened and continued.
In keeping with government's commitment to compete effectively internationally, there has been the emphasis on value added and niche clothing production at the mid to upper end of the market. We can see the success of this focus through increased exports over the last period.
It should also be noted that at the Sectoral Job Summit, it was agreed that it was necessary to exploit commodity production in the rural areas as well as raise the competitive ability of these firms to move into more value added segments. The government's Integrated Sustainable Rural Development Strategy is attempting to address this area and to make rural areas economic and socially viable. We need the support of the labour movement in making this massive project go forward and succeed.
Chairperson, while noting work that still needs to be done, it is important to acknowledge the contribution and sterling work that SACTWU is doing in our communities.
Firstly, allow me to congratulate SACTWU on the groundbreaking initiatives with regards to the "buy local campaign" that is linked to the "Proudly South African Campaign."
Through its procurement programmes, Government will support the campaign to buy products, goods and services from local firms. In addition, the Proudly South African campaign will inculcate pride in our products, our ability as a country and ultimately contribute to economic growth.
I also wish to congratulate SACTWU on the links you are forging with other countries in the continent, such as Zimbabwe and Nigeria. This continental solidarity should be strengthened for the advancement of our development objectives. Your activities in the continent are line with our attempts at contributing towards the recovery of our continent, such as the Millennium African Recovery Programme (MAP) and the New African Initiative.
I also would like to acknowledge the contribution of SACTWU to the human resource development objectives of our country, through the provision of bursaries to children of members. This is an important investment in the most important resource of our country, our children.
Your efforts are a reminder to all of us that we have a role to play in the development of our country. You give us hope and inspiration, and the reason to continue working for a better life for all our people.
A lot of work lies ahead, and we can achieve more if we are united our action.
Before I conclude, I wish to stress the concept of partnership, particularly between government, labour and the private sector. But more importantly, the Alliance needs to be seen as a united force in face of the challenges facing us. We have been given a historic mission to lead, and I believe that for the country to move forward, the Alliance has to lead.
I also would like to call upon the labour movement to begin leading some of the processes we see unfolding before us. For example, we see protests and other action in places where richer nations meet, but where is the trade union movement? We hardly hear the voice of the organized labour movement locally and in the world on these issues.
Partnership and speaking in one voice can never be overemphasized.
In conclusion, let me repeat that we have a lot to be proud of as a country, but we still face many challenges. However, we can overcome those challenges if we work together.
I wish you a successful congress.
I thank you.